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The following table is for the present value of $1 at compound interest. Year 6% 10% 12% 1 2 0 0 3 4 5 .943

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The following table is for the present value of $1 at compound interest. Year 6% 10% 12% 1 2 0 0 3 4 5 .943 .890 0.840 0.792 0. 747 0.909 0.826 0.751 0.683 .621 0.893 0.797 0.712 0.636 0.567 0 The following table is for the present value of an annuity of $1 at compound interest. Year 1 0 2 3 6% .943 1.833 2.673 .465 4212 10% 0.9090 1.736 2.487 3.170 3.791 12% .893 1690 2.402 3.037 3.605 4 3 5 Using these tables, if an investment is made now for $20,000 that will generate a cash inflow investment, assuming an earnings rate of 10%? a. $25,360 b. $14,536 1.736 2,487 3.170 3.791 1690 2.402 3.037 3.605 ent is made now for $20,000 that will generate a cash inflow of $5,000 a year for the next 4 years, what would be the net present value (rounded to the nearest dollar) of the s rate of 104

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